Answer:
player 2 is signing a better contract
Explanation:
the present value of an annuity (player 1) = annual payment x annuity factor
assuming that the interest rate is 10%
present value = $10 million x 6.1446 (PV annuity factor, 10%, 10 periods) = $61.446 million
player 2's contract
the present value of a growing annuity = [payment / (i - g)] x {1 - [(1 + g) / (1 + i)]ⁿ} = [$10 / (10% - 5%)] x {1 - [(1 + 5%) / (1 + 10%)]¹⁰} = $200 x 0.372 = $74.398 million
Answer:
(B) Hire the firefighter if the cost of the new firefighter is less than $75,000.
Explanation:
The city should hire the Firefighter only if the cost of new firefighter is less than $75,000.
Since $5 x 15000 residents = $75, 000.
Therefore it is still beneficial to hire a new firefighter if the cost is less than $75, 000
Answer: the correct answer is B. Tax depreciation for the period exceeds book depreciation.
Answer: an increment in profit $1615
Explanation:
2700 pounds of Banana
Total cost = $864
If sold = $1485
When converted into bread $2565 and sold at the cost of $4480
Oven rentage = $300
What is the incremental effect on income if Publix converts the bananas to banana bread?
Sales Amount - Expenses incurred
= $4480 - $2565 + $300
= $4480 - $2865
= $1615
If he had sold the bananas
Sales amount - cost amount
= $1485 - $864
= $621
By converting the bananas to bread the incremental effect on income is it would yield more profits at $1615 compared to when sold at which is $621
